101.36-40

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Lords Amendments to the Financial Services Bill

36

“81
Transfer of ownership: report

(1)
This section applies where the Bank of England makes one

or more share transfer instruments in respect of a UK

clearing house under section 13(2).

(2)
The Bank must report to the Chancellor of the Exchequer

about the exercise of the power to make share transfer

instruments under that section.

(3)
The report must comply with any requirements as to

content specified by the Treasury.

(4)
The report must be made as soon as is reasonably

practicable after the end of one year beginning with the date

of the first transfer instrument made under section 13(2).”

(6)
The table mentioned in subsection (1)(a) is as follows—

Provision
Modification

Section 1
Ignore subsection (2)(b) and (c).

In subsection (3)(c), for “to temporary public ownership”

substitute “of ownership”.

In subsection (4)(a), for “15, 16, 26 to 31 and 85”

substitute “15, 26 and 28 to 31”.

Section 4
Ignore subsection (2)(b) and (c).

Ignore subsection (3)(a), (b) and (ba).

In subsection (5), for “banking” substitute “financial”.

In subsection (6), for “protect depositors” substitute

“maintain the continuity of central counterparty clearing

services”.

Ignore subsections (8A), (8B) and (9).

Section 5
Ignore subsection (1)(b) and (c).

In subsection (3)—

(a)
for “Sections 12 and 13 require” substitute

“Section 12 requires”, and

(b)
ignore the words “and temporary public

ownership”.

Section 6
In subsection (4)—

(a)
after “Before” insert “issuing or”, and

(b)
ignore paragraph (d).

In subsection (5) after “after” insert “issuing or”.

Section 7
In subsection (1), for “PRA” substitute “Bank of

England”.

In subsection (2), for the words following “satisfy the”

substitute “recognition requirements”.

The Bank of England may treat Condition 1 as met if

satisfied that it would be met but for the withdrawal or

possible withdrawal of critical clearing services by the

UK clearing house.

In subsection (3), for “satisfy the threshold conditions”

substitute “maintain the continuity of any critical

clearing services it provides while also satisfying the

recognition requirements”.

In subsection (4), for “PRA” substitute “Bank of

England”.

Ignore subsection (4A).

In subsection (5)—

(a)
for “PRA” substitute “Bank of England”, and

(b)
ignore paragraph (a) unless the UK clearing

house is a PRA-authorised person, in which case

for “Bank of England” substitute “PRA”.

Ignore subsections (7) and (8).

For the purposes of section 7—

(a)
“critical clearing services” means central

counterparty clearing services the withdrawal of

which may, in the Bank of England’s opinion,

threaten the stability of the financial systems of

the United Kingdom, and

(b)
“recognition requirements” means the

requirements resulting from section 286 of the

Financial Services and Markets Act 2000.

Section 8
In subsection (1), omit “in accordance with section 11(2)

or 12(2)”.

Ignore subsection (2)(c) and (d).

In subsection (3), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

In subsection (4), ignore the words “in accordance with

section 11(2) or 12(2)”.

Section 9
Ignore section 9.

Section 11
Ignore subsection (2)(a).

Section 13
See above.

Section 14
Ignore subsection (5).

Section 16
Ignore section 16.

Section 20
Ignore subsections (2) and (4).

Section 24
In subsection (1), ignore paragraph (c) unless the UK

clearing house is a PRA-authorised person.

Section 25
Ignore section 25.

Section 26
In subsection (1), for “11(2)” substitute “13(2)”.

In subsection (5), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

In subsection (6), for “11(2)” substitute “13(2)”.

Sections 26A
Ignore sections 26A and 27.

and 27

Sections 28
See above.

and 29

Section 30
In subsection (5), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

Section 31
In subsection (4), for “7, 8 and 51” substitute “7 and 8”.

In subsection (5), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

Section 41
In subsection (1), ignore paragraph (c) unless the UK

clearing house is a PRA-authorised person.

Section 42
In subsection (5), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

Section 42A
In subsection (5), for “7, 8 and 50” substitute “7 and 8”.

In subsection (6), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

Section 43
In subsection (6), for “7, 8 and 52” substitute “7 and 8”.

In subsection (7), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

Section 44
In subsection (5), for “7, 8 and 52” substitute “7 and 8”.

In subsection (6), ignore paragraph (a) unless the UK

clearing house is a PRA-authorised person.

Sections 45
See above.

and 46

Sections 49 to
Ignore sections 49 to 53.

53

Section 54
In subsection (1), for “A compensation scheme order”

substitute “An order under section 89F”.

In subsection (4)(b), for “compensation scheme order”

substitute “the order under section 89F”.

Section 55
In subsection (10), for “to which section 62 applies”

substitute “under section 89F”.

Section 56
In subsection (6), for “to which section 62 applies”

substitute “under section 89F”.

Section 57
In subsection (1), for “A compensation scheme order”

substitute “An order under section 89F”.

In subsection (4)(a), for “has had a permission under

Part 4A of the Financial Services and Markets Act 2000

(regulated activities) varied or cancelled” substitute “no

longer qualifies as a recognised body under Part 18 of

the Financial Services and Markets Act 2000 (recognised

investment exchanges and clearing houses) or is subject

to a requirement imposed under that Part”.

Section 58
In subsection (1), for “A resolution fund order”

substitute “An order under section 89F that provides for

transferors to become entitled to the proceeds of the

disposal of things transferred”.

Ignore subsection (3).

In subsection (4), for “A resolution fund order”

substitute “An order under section 89F that provides for

transferors to become entitled to the proceeds of the

disposal of things transferred”.

In subsection (5), for “A resolution fund order”

substitute “An order under section 89F that provides for

transferors to become entitled to the proceeds of the

disposal of things transferred”.

Ignore subsections (6) to (8).

Section 59
Ignore section 59.

Section 60
In subsection (3)(c), ignore the references to bank

insolvency and bank administration.

In subsection (4)—

(a)
ignore paragraphs (a) and (b), and

(b)
in paragraph (c), for “a third party compensation

order” substitute “an order under section 89F”.

In subsection (5)—

(a)
ignore paragraph (a), and

(b)
in paragraph (c), for “a compensation scheme

order or resolution fund order” substitute “an

order under section 89F”.

Section 61
In subsection (1)—

(a)
ignore paragraphs (a) to (c), and

(b)
treat the subsection as including a reference to

orders under section 89F.

Ignore subsection (2)(b).

Section 62
Ignore section 62.

Section 65
In subsection (1)(a)(ii), for “order” substitute

“instrument”.

In subsection (3)—

(a)
in paragraph (a), ignore the words “where

subsection (1)(a)(i) applies”, and

(b)
ignore paragraph (b).

Section 66
In subsection (1)—

(a)
in paragraph (a), ignore the reference to section

11(2)(a),

(b)
in paragraph (d)(i), ignore the words following

“England”, and

(c)
ignore paragraph (d)(ii).

Section 68
In subsection (1)(a), for “order” substitute “instrument”.

Section 69
In subsection (4)—

(a)
in paragraph (a), ignore the words “in relation to

sections 63 and 64”, and

(b)
ignore paragraph (b).

Section 70
In subsection (3)—

(a)
in paragraph (a), ignore the words “in relation to

section 63”, and

(b)
ignore paragraph (b).

Section 71
Ignore subsection (1)(a).

Section 72
Ignore subsection (1)(a).

Section 73
Ignore subsection (1)(a).

Section 79A
In subsection (2), ignore the words “share transfer

instruments and”.

Section 81
See above.

Section 81B
In subsection (1), for “or 12(2)” substitute “, 12(2) or

13(2)”.

Ignore subsection (3)(c) and (d).

In subsection (6), ignore paragraph (b) unless the

clearing house is a PRA-authorised person.

Section 81C
In subsection (2), ignore the words “and the bank

administration procedure”.

Ignore subsection (3).

Sections 82
Ignore sections 82 and 83.

and 83

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